Press Release
Congress Should Expand Universal Service Funding to Broadband Networks
Contact: Timothy Karr, 201-533-8838
WASHINGTON - In testimony before the Senate Commerce Committee today, Free Press Policy Director Ben Scott urged Congress to expand the Universal Service Fund (USF) to broadband networks without delay.
"The Universal Service Fund's present predicament is both a threat and an opportunity," said Scott, in testimony delivered on behalf of Free Press, Consumers Union and the Consumer Federation of America. "As communications technologies evolve, USF must evolve with it. We must expand universal service to support broadband networks - and we cannot afford to delay."
"The debate over USF reform is complex, and there is a danger that in the quest to iron out the details of implementation, Congress will lose sight of the principles that drive this policy," Scott added. "The cornerstone of this legislation is the commitment to providing communications services to every American household, without regard to geography or income, at an affordable rate and a robust quality of service."
In addition to the Senate testimony, Free Press released a detailed report on why the United States trails other developed nations in broadband penetration. The report - "Why Does the U.S. Lag Behind? Broadband Penetration in the Member Nations of the Organization for Economic Cooperation and Development" - presents a comparative statistical analysis that suggests expanding the Universal Service Fund could help close the digital divide.
Among the report's key findings:
Contrary to conventional wisdom, the low population density in the United States - compared to nations such as South Korea and Sweden - does not account for its low global rank in broadband penetration.
A key factor in our subpar broadband performance is the high U.S. poverty rate. Extending universal service to unserved and underserved areas, as well as lowering the cost of broadband to low-income consumers, may be an effective way of stimulating supply and demand of broadband services.
Another important finding is this country's relatively low levels of childhood technology exposure. In the OECD, the United States ranks ahead of only Turkey, Mexico and Slovakia in the percentage of 15-year-olds who have never accessed a computer.
Scott said: "USF is uniquely suited to reverse our broadband fortunes, bringing affordable service and new investment where we need it most - to low-income and rural areas that have been trapped on the wrong side of the digital divide."
To read Scott's prepared testimony, see www.freepress.net/docs/Scott_USF_testimony.pdf
To read the full report, go to www.freepress.net/docs/us_lag.pdf
"The Universal Service Fund's present predicament is both a threat and an opportunity," said Scott, in testimony delivered on behalf of Free Press, Consumers Union and the Consumer Federation of America. "As communications technologies evolve, USF must evolve with it. We must expand universal service to support broadband networks - and we cannot afford to delay."
"The debate over USF reform is complex, and there is a danger that in the quest to iron out the details of implementation, Congress will lose sight of the principles that drive this policy," Scott added. "The cornerstone of this legislation is the commitment to providing communications services to every American household, without regard to geography or income, at an affordable rate and a robust quality of service."
In addition to the Senate testimony, Free Press released a detailed report on why the United States trails other developed nations in broadband penetration. The report - "Why Does the U.S. Lag Behind? Broadband Penetration in the Member Nations of the Organization for Economic Cooperation and Development" - presents a comparative statistical analysis that suggests expanding the Universal Service Fund could help close the digital divide.
Among the report's key findings:
Contrary to conventional wisdom, the low population density in the United States - compared to nations such as South Korea and Sweden - does not account for its low global rank in broadband penetration.
A key factor in our subpar broadband performance is the high U.S. poverty rate. Extending universal service to unserved and underserved areas, as well as lowering the cost of broadband to low-income consumers, may be an effective way of stimulating supply and demand of broadband services.
Another important finding is this country's relatively low levels of childhood technology exposure. In the OECD, the United States ranks ahead of only Turkey, Mexico and Slovakia in the percentage of 15-year-olds who have never accessed a computer.
Scott said: "USF is uniquely suited to reverse our broadband fortunes, bringing affordable service and new investment where we need it most - to low-income and rural areas that have been trapped on the wrong side of the digital divide."
To read Scott's prepared testimony, see www.freepress.net/docs/Scott_USF_testimony.pdf
To read the full report, go to www.freepress.net/docs/us_lag.pdf
